This is an office consolidation and not an
official version of this Act or Regulation. While care has been taken in assembling this
document, it is not warranted to be true and accurate. Official copies of all Provincial
Acts and Regulations are available from Island
Information Service.

2. This regulation
applies to contracts of insurance in the form approved by the Superintendent
under subsection 216(9) of the Act. (EC697/03)

Prohibited
grounds for declining to issue, refusing to renew or terminating a contract,
or for refusing coverage or endorsement

3. The prohibited
grounds prescribed for the purposes of section 219.1 of the Act are the
following:

(a) the age of the
applicant or another person who would be an insured person under the
contract;

(b) the age of the
vehicle that would be insured by the contract, unless the vehicle:

(i) is an antique
vehicle,

(ii) is a reconstructed
vehicle, or

(iii) has been modified
for enhanced performance;

(c) whether the applicant
or another person who would be an insured person under the contract is or
has been insured by the Facility Association;

(d) whether the applicant
or another person who would be an insured person under the contract was
declined insurance or refused a renewal of insurance by an insurer;

(e) whether the applicant
or another person who would be an insured person under the contract has
claimed in the past under a policy of automobile insurance, as a result of
accidents for which the applicant or that person was not at fault;

(f) whether the applicant
or another person who would be an insured person under the contract has
failed to make one payment to an insurer, other than the first payment of a
periodic payment plan, if the missed payment is the only payment missed
under a policy of automobile insurance in the past 24 months, and if the
missed payment was made within 30 days of the date on which it was
originally due;

(g) whether the applicant
or another person who would be an insured person under the contract has a
lapse in coverage under a contract of automobile insurance, for a period of
no more than 12 months, unless that lapse resulted, directly or indirectly,
from

(i) the termination of a
policy of automobile insurance, as a result of a failure to pay premiums due
under the contract, or

(ii) the suspension of
the person's driver's licence for an offence related to the use or operation
of an automobile.
(EC697/03)